# How to Use YUSD on WOOFi

**Published by:** [Aegis.im](https://paragraph.com/@aegis-im-2/)
**Published on:** 2025-10-06
**URL:** https://paragraph.com/@aegis-im-2/how-to-use-yusd-on-woofi

## Content

Introduction: Idle Stablecoins and Lost YieldCentralized exchanges hold billions of stablecoins that earn nothing for users. While platforms benefit from deploying that capital, traders and depositors miss out on the yield that should be theirs. Aegis and WOOFi want to change this. By making collateral yield-bearing, stablecoins can serve two purposes at once: backing leverage while generating yield in the background. This unlocks new levels of capital efficiency and makes trading more sustainable.WOOFi’s Approach to Capital EfficiencyWOOFi is a DeFi platform that combines trading, liquidity, and yield into one seamless system.Perpetuals with LOB: A decentralized trading experience similar to a CEX, but fully on-chain.Vaults and Earn: Assets deposited in vaults are deployed in strategies and liquidity provision, returning yield to users.Boosters: Gamified rewards that enhance yields for active participants.The result is a system that maximizes the utility of idle assets while making advanced strategies accessible to everyday users.YUSD as CollateralAegis issues YUSD, a Bitcoin-backed stablecoin engineered to generate yield by arbitraging the BTC funding rate. Now, users can use YUSD as yield-bearing margin collateral on WOOFi on Ethereum mainnet. This means the collateral is no longer generating yield for a centralized entity it accrues yield for the users using it as margin. By integrating YUSD into WOOFi’s margin system, users gain:Capital efficiency with leverage and yield in one positionYield layering that captures both protocol yield and trading opportunityA differentiated stablecoin that functions as a productive collateral assetStep by-Step GuideStep 1: Acquire YUSDSwap USDC or USDT for YUSD on the buy page.Step 2: Connect to WOOFiVisit WOOFiConnect your walletCreate a trading account (this requires 2 signatures)Step 3: Deposit YUSDDeposit YUSD into your margin accountSign the deposit transactionStep 4: DoneYour YUSD is now available as margin collateral, earning the native APY while you trade.Why This MattersThis is a major milestone for DeFi yield architecture. By enabling YUSD to serve as yield-generating collateral, Aegis and WOOFi bring together trading, yield capture, and capital efficiency in a way that has not been possible before. Users now access leverage without surrendering yield, and exposure without sacrificing return. The implications are broad:Save on funding costs as yield offsets borrowing expensesLayer returns by combining protocol yield and trading profitsBoost adoption since YUSD offers differentiated leverage utilityStrengthen liquidity and utility by moving capital from idle into productive and hedged structuresIn short, yield-bearing margin collateral is the next frontier. With Aegis and WOOFi, it is now live. Disclaimer: This article is provided for educational and informational purposes only and should not be interpreted as financial, legal, or investment advice. The strategies, protocols, and platforms discussed carry inherent risks, and readers are encouraged to conduct their own research before making any financial decisions. Trading futures and using leverage involve a high degree of risk, including the possibility of losing more than your initial investment. Liquidations can occur quickly in volatile markets, and traders should exercise caution, use proper risk management, and never trade with capital they cannot afford to lose.

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